i need all the requirements
Requirements e been a Dix volume is 0.0 54 1. Division A of Dixon, Inc. has $5,400,000 in assets. Its yearly fixed costs are $766,000, and the variable costs of its product line are $1.90 per unit. The division's volume is currently 460,000 units. Competitors offer a similar product, at the same quality, to retailers for $4.25 each. Dixon's management team wants to earn a 6% return on investment on the division's assets. a. What is Division A's target full product cost? b. Given the division's current costs, will Division A be able to achieve its target profit? C. Assume Division A has identified ways to cut its variable costs to $1.75 per unit. What is its new target fixed cost? Will this decrease in variable costs allow the division to achieve its target profit? d. Division A is considering an aggressive advertising campaign strategy to differentiate its product from its competitors. The division does not expect volume to be affected, but it hopes to gain more control over pricing. If Division A has to spend $80,000 next year to advertise and its variable costs continue to be $1.75 per unit, what will its cost-plus price be? Do you think Division A will be able to sell its product at the cost-plus price? Why or why not? 2. The division manager of Division B received the following operating income data for the past year. Click the icon to view the Division B operating income data.) The manager of the division is surprised that the T205 product line is not profitable. The division accountant estimates that dropping the T205 product line will decrease fixed cost of goods sold by 584,000 and decrease fixed selling and administrative expenses by $17.000 a. Prepare a differential analysis to show whether Division B should drop the T205 product line eindl mein Dic vol 00.0 $4 conunue to be $1.75 per unit, what Will TS COSE pius price be? Do you think DIVISION A WI De able to sell its product at the cost-plus price? Why or why not? 2. The division manager of Division B received the following operating income data for the past year. (Click the icon to view the Division B operating income data.) The manager of the division is surprised that the T205 product line is not profitable. The division accountant estimates that dropping the T205 product line will decrease fixed cost of goods sold by 584,000 and decrease fixed selling and administrative expenses by $17,000 a. Prepare a differential analysis to show whether Division B should drop the T205 product line. b. What is your recommendation to the manager of Division B? 3. Division C also produces two product lines. Because the division can sell all of the product it can produce, Dixon is expanding the plant and needs to decide which product line to emphasize. To make this decision, the division accountant assembled the following data: (Click the icon to view the Division C product data.) After expansion, the factory will have a production capacity of 4.200 machine hours per month. The plant can manufacture either 28 units of K707s or 58 units of G582s per machine hour. a. Identify the constraining factor for Division C. b. Prepare an analysis to show which product line to emphasize. 4. Division D is considering two possible expansion plans. Plan A would expand a current product line at a cost of $8.500.000 Fxnected annual nat cash inflows are $1.600.000 with zero residual value at the the ing Print Done . Data Table e been aske Division B of Dixon, Inc. Income Statement For the Year Ended December 31, 2018 volume is cur Product Line T205 B179 Total $ 360,000 $ 370,000 $ 730,000 Net Sales Revenue Cost of Goods Sold: Variable 39,000 270,000 309,000 37,000 60,000 97,000 76,000 330,000 406,000 Fixed Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Variable 51.000 273,000 324,000 65,000 82,000 147,000 Print Done Clear All -X Data Table been asked Product Line T205 B179 Total 370,000 $ 730,000 Net Sales Revenue $ 360,000 $ volume is curre Cost of Goods Sold: Variable 39,000 270,000 37,000 60,000 76,000 330,000 Fixed 309,000 97,000 406,000 51,000 273,000 324,000 Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Variable N 65,000 61,000 82,000 22,000 147,000 83,000 Fixed 126,000 104.000 230,000 Total Selling and Administrative Expenses Operating Income (Loss) (75,000) $ 169,000 $ 94,000 Print Done Clear All volu $84.0 a. P b. W 3. Divisid produ this de Per Unit ke K707 G582 Sales price Variable costs 86 $ 22 52 25 64 $ 27 Contribution margin Contribution margin ratio 74.4% 51.9% After plant a. ld b. P 4. Divisid costo endo $8,10 estim Jat a 2 Print Done the volu prouts, DIUITIS Caparumy o Pronta TECUS TU UCIUC WIITEIT pruut HTC U CITIGSIZE. TU MORE this decision, the division accountant assembled the following data: Click the icon to view the Division C product data.) After expansion, the factory will have a production capacity of 4,200 machine hours per month. The plant can manufacture either 28 units of K707s or 58 units of G582s per machine hour. a. Identify the constraining factor for Division C. b. Prepare an analysis to show which product line to emphasize. 4. Division D is considering two possible expansion plans. Plan A would expand a current product line at a cost of $8,500,000. Expected annual net cash inflows are $1,600,000, with zero residual value at the end of 10 years. Under Plan B, Division D would begin producing a new product at a cost of 58,100,000. This plan is expected to generate net cash inflows of $1,080,000 per year for 10 years, the estimated useful life of the product line. Estimated residual value for Plan B is $1,200,000. Division D uses straight-line depreciation and requires an annual return of 10%. a. Compute the payback, the ARR, the NPV, and the profitability index for both plans. b. Compute the estimated IRR of Plan A. c. Use Excel to verify the NPV calculations in Requirement 4(a) and the actual IRR for the two plans. How does the IRR of each plan compare with the company's required rate of return? d. Division D must rank the plans and make a recommendation to Dixon's top management team for the best plan. Which expansion plan should Division D choose? Why? ing Print Done Doug Dhon majority stockholder and president of Denon, le, is working with his top managers on titre plans for the company Ao the company's managerial accountant, you've been asked to analyze the following thatons and make recommendations to the management team Read the requirements Hequirement 1. Division of Dion, Inc. has 5.000.000 in sets the yearly feed costs we 5766,000, and the variable costs of its product line are $190 per unit. The division's volume is currently $60,000 units Competitors other a similar product, the same quality to retailers for 515 each Don's management team wants to cam a 6% return on investment on the divor's 1. What is Division A's target product cost? Less Target product cost
